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India plans to ban cryptocurrencies, but launches its own currency

The Government of India has submitted an act of parliament banning private cryptocurrencies, but is also planning to introduce its own official digital currency.

The ban announced by the Government of India yesterday is part of the cryptocurrency and regulation of the official digital currency bill that will be introduced sometime this winter.

The planned legislation aims to “create a facilitative framework for creating the official digital currency issued by the Reserve Bank of India (RBI).”

The proposed law follows the crackdown on Chinese cryptocurrencies, where financial regulators and central banks have outlawed all digital currency transactions.

Wraith Halaf, Head of Investment Analysis at AJ Bell, said: Real World.

“The wording of the Indian government’s announcement suggests that there are some exceptions to the ban to promote the underlying blockchain technology, but it is not currently clear what they are. You may be wondering how you can ban the trading of cryptocurrencies on private computers across exchanges, but the ban should at least prevent advertising and marketing activities and limit your activities. “

Governments generally have two major concerns about the rise of cryptocurrencies. The first is to make money laundering easier for criminals. The second is the impact on investors if the price bubble eventually collapses.

Despite El Salvador’s announcement this week that it will build a city in the form of Bitcoin, it seems inevitable that cryptocurrencies will continue to face greater regulations or bans in more jurisdictions around the world.

Khalaf said: It’s probably not something like Bitcoin, but issued in the form of stablecoin fixed in the currency of an existing country, and its volatility is unsuitable as a medium for storing or exchanging value. Perhaps for that reason, India has announced that it will launch its own digital currency, alongside plans to ban private crypto assets.

“In common with many other central banks, Bank of England is also considering issuing digital pounds I will talk about this next year. National digital currencies can benefit consumers in terms of transaction speed and rates, but central banks on this path are very careful not to destabilize their existing financial ecosystem. You need to step into. ”

India plans to ban cryptocurrencies, but launches its own currency

Source link India plans to ban cryptocurrencies, but launches its own currency

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